Chapter 12 Vocabulary Review

What is the definition of 'Payroll' as per the learning material?

• The total amount of money an employee earns in a pay period

• A list of employees and the payments due to each employee for a specific pay period

• A fixed amount of money paid to an employee for each pay period

• An amount paid to an employee based on a percentage of the employee's sales

What does 'Gross Earnings' refer to?

• A specific amount of money paid by an employer for each item the employee produces

• The amount of time over which an employee is paid

• The total amount of money an employee earns in a pay period; also called gross pay

• An amount of money paid to an employee at a specified rate per hour worked

Which term describes an amount of money paid to an employee at a specified rate per hour worked?

• Salary

• Wage

• Commission

• Piece Rate

What is the role of a 'Payroll Clerk'?

• An employee responsible for preparing the payroll

• A device that scans the magnetic strip on an employee's identification badge

• A record of the time an employee arrives at work and leaves

• An amount paid to an employee based on a percentage of the employee's sales

What is a 'Time Card' used for?

• To record the total amount of money an employee earns

• To list the employees and their payments

• To record the time an employee arrives at work, leaves work, and the total number of hours worked each day

• To scan the magnetic strip containing employee information

What is the Overtime Rate?

• The employee's year-to-date gross earnings

• Pay rate employers are required to pay certain employees covered by state and federal laws for hours worked outside of contracted full time hours.

• A record prepared for each employee that contains all payroll information

• The amount left after total deductions have been subtracted from gross earnings

What does Deduction refer to in payroll terms?

• The amount left after total deductions have been subtracted from gross earnings

• A voluntary payroll deduction from gross earnings for a retirement plan

• An amount that is subtracted from an employee’s gross earnings as required by law and those an employee wishes to have withheld

• Depositing net pay directly into an employee’s personal bank account

What is a Withholding Allowance?

• The employee's year-to-date gross earnings

• A form that summarizes information about employees' earnings for each pay period

• An allowance an individual claims on a Form W-4; it is used to calculate the amount of income tax withheld from an employee’s paycheck

• A record prepared for each employee that contains all payroll information

What is a 401(K) Plan?

• A form that summarizes information about employees' earnings for each pay period

• The employee's year-to-date gross earnings

• A record prepared for each employee that contains all payroll information

• A voluntary payroll deduction from gross earnings; the employee does not pay income tax on the amount contributed until the money is withdrawn from the plan, usually after age 59 ½

What is the purpose of a Payroll Register?

• To deposit net pay directly into an employee’s personal bank account

• To provide a record of year-to-date gross earnings for the employee

• To summarize information about employees' earnings for each pay period

• To record the amount of income tax withheld from an employee’s paycheck